JAIIB, one of the central courses is led by the Indian Institute of Banking and Finance(IIBF). JAIIB Exam is performed for 3 papers PPB(Full form – Principles and Practices of Banking), AFB(Accounting and Finance for Bankers), and LRAB(Legal and Regulatory Aspects of Banking). PPB is the foremost paper in which the basic principles and practices of banking are dealt with. To qualify for the PPB Paper the contenders must have a crystal clear knowledge of all the topics. In this article, we have discussed the banking terms that will be advantageous to the contenders in their preparation for the exam.
JAIIB PPB Banking Terms – Overview
The contenders qualifying for the JAIIB PPB Exam must keep the banking terms at their tips. When the terms of banking are clear they will get control over the topics of PPB. Some of the banking terms that will be advantageous for a contender are noted below:
- Account: An account guides an arrangement by which an organization such as a bank bears the financial assets of a customer and holds them on the wish of the customer.
- Automated Clearing House(ACH): Automated Clearing House is also known as Direct Payments because money is moved from one bank account to another without the use of cheques, cash, etc. ACH is utilized for electronic payments and money transfers between banks, businesses, and individual customers.
- Automated Teller Machine(ATM): A computerized electronic machine through which the funds of a bank account holder can be handled efficiently. A person can perform several functions through an ATM such as depositing or withdrawing money, checking the balance of their account, etc.
- Base Rate: A minimum rate of interest set by the central bank of the country that is used by all the other banks to deliver the loan to its customers is called a base rate.
- National Electronic Funds Transfer(NEFT): An electronic fund transfer system between banks that are secured, economical, efficient, and reliable. The Reserve Bank of India(RBI) carries the National Electronic Fund Transfer system. The money through NEFT is moved from one bank to another or within the same branch.
- Collateral: Property or something valuable provided to the bank in exchange for a loan is called collateral.
- Asset: Any resource or valuable item that is owned and managed by a business is called an asset.
- MICR Code: The full form of MICR is Magnetic Ink Character Recognition and a special and unique MICR Code is designated by the RBI to every branch of the bank. It is a nine-digit code that is used for determining a bank and branch participating in the ECS Credit scheme.
- KYC: The full form of the term KYC is Know Your Customer. To know the proper identity of a customer KYC is undergone by all the banks. The procedure of KYC makes sure that no fraudulent activities are taking place in the bank.
- Capital Budgeting: Capital Budgeting is the procedure through which a business decides to purchase any fixed asset or invest in a particular project.
- Plastic Money: Mostly credit cards and debit cards are referred to as plastic money. The money that is used by people not in the form of hard cash is called plastic money.
- Mobile Banking: The banking services that are operated by people with the help of a mobile phone are called Mobile Banking.
- Bank Rate: The rate at which the banks borrow money from the RBI is called the bank rate.
- Monetary Policies: To establish a standard banking procedure in the country the Reserve Bank of India assigns certain rules and regulations which are known as Monetary Policies.
These are some major banking terms in JAIIB PPB. We hope that this article will help the contenders to know more about the Banking terms in JAIIB PPB. For more details and better study material, the contenders can access our ENTRI Learning App.